Hughes Network Systems, an EchoStar subsidiary, filed for Chapter 11 bankruptcy protection on August 2, 2026. The company faces a looming $1.5 billion debt maturity.
Competition from SpaceX’s Starlink has halved the Hughesnet subscriber base since 2020. The provider will continue serving existing customers during the restructuring process.
Hughesnet plans to pivot its business model away from consumers to focus on enterprise, government, and defense sectors. This follows the June 30th bankruptcy filing of another EchoStar unit, Dish DBS Corporation.